AGENDA
Agenda
Red Bull Energy Drink Success Story
The Current Energy Shot Category
What is the Consumer Telling Us they Need?
How will Red Bull meet the Consumer Needs?
How will Red Bull Shots help you?
Activation Plan
AGENDA
Agenda
Red Bull Energy Drink Success Story
The Current Energy Shot Category
What is the Consumer Telling Us they Need?
How will Red Bull meet the Consumer Needs?
How will Red Bull Shots help you?
Activation Plan
RED BULL ENERGY DRINK SUCCESS STORY
Energy
Created
& the
Led Energy
By RedCategory
Bull
Red BullCategory
Created and
Leads
Red Bull is the original and Worlds leading energy drink.
Red Bull has the highest Top of Mind awareness of any energy brand in
Australia – 98%*.
Red Bull has a strong consumer base built on consistent and heavy Brand
support.
*Source: D&M Trial & Awareness Study 2009
RED BULL ENERGY DRINK SUCCESS STORY
The ‘Secret’ To Our Success
One of the reasons for continued growth is the extraordinary marketing
investments - consistently outspending all of our competitors.
Source: Media Edge Jan –Jun 09
RED BULL MARKETING PROGRAM
Heavy ATL – TV, Cinema, Radio
Nudist
Christmas
Outback
Pigeon
Red Bull Top Athletes
Leverage Events/ Media Coverage
Sampling and Cultural Marketing
MASSIVE $25M IN BRAND INVESTMENT IN 2009
AGENDA
Agenda
Red Bull Energy Drink Success Story
The Current Energy Shot Category
What is the Consumer Telling Us they Need?
How will Red Bull meet the Consumer Needs?
How will Red Bull Shots help you?
Activation Plan
ENERGY SHOTS BACKGROUND
Current Category Status
Energy shots are a rapidly emerging market in North America and
Europe, generating in 2008:
188 million units
sales value of US$423m
Category growth +200% in 2008*
Key findings from the 2009 Zenith Energy Shot Drinks report include:
250ml/500ml energy drinks may contain too much volume for
some consumers;
Shots opening up new consumption occasions for energy;
Appealing to new energy consumers;
Ready to expand into new markets.
Source: Nielsen Scantrack USA 11/08; Zenith International
THE CURRENT ENERGY SHOT CATEGORY
Category Outlook - Growth
Estimated to reach 500 million units and a retail value approaching $1.2bn by 2010.
Product theft already an issue
Proper execution and exploitation of the Leading Brand(s) will maximize the potential
Source: Zenith International
MASSIVE INCREMENTAL OPPORTUNITY
Current Category Status – Incremental Business
Energy shots are driving new users to functional products… and do not
extensively cannibalize existing business = huge opportunity!!!
*Source: IRI Energy Shot Attitudes and Usage Study 1/09
THE CURRENT ENERGY SHOT CATEGORY
Performance of Current Energy Shots
National May 2009
Uzi Energy Drink 30ml
Raging Rex Nat Energy Shot 30ml
Bad Boy Power Drink Shot 10ml
Bad Boy Power Drink Shot 10ml
Bad Girl Turbo Drink Shot 10ml
Dollars
(000s)
23.2
14.1
6.3
6.3
0
UPSW
8
5
4
4
3
Price
($/Unit)
3.87
3.82
2.16
2.16
2.8
Numeric
Distribution
8.4
8.2
6
6
0
Low ROS and awareness and distribution of current energy shot offerings
contributing to lower ROS
Great opportunity for Red Bull to bring trust and credibility to the emerging
shot category
Source: Aztec P&C Value 21/6/09
Agenda
AGENDA
Red Bull Energy Drink Success Story
The Current Energy Shot Category
What is the Consumer Telling Us they Need?
How will Red Bull meet the Consumer Needs?
How will Red Bull Shots help you?
Activation Plan
CONSUMER RATIONALE: UNITED STATES
Gaps in the Current Category Offer
1) Need for a trusted brand:
5-Hour is an uncontested leader ...but…
“I don’t trust (energy shots) they feel cheap
and the packaging is sketchy.”*
2) Need for better taste:
Current shots on the market are not entirely satisfying …
“Ugh. It doesn't taste very good.”*
3) Need for ‘Image’ in the category in addition to rational usage:
Shots are associated with rational supplemental consumption …
“Energy drinks are more of a social drink for me….Its fun to drink.
Energy shots are about efficiency….one slug and I’m done.”*
*Source: Greenfield qualitative research energy shot users December 2008
Agenda
AGENDA
Red Bull Energy Drink Success Story
The Current Energy Shot Category
What is the Consumer Telling Us they Need?
How will Red Bull meet the Consumer Needs?
How will Red Bull Shots help you?
Activation Plan
HOW WILL RED BULL MEET THE CONSUMER NEEDS?
1) Need for a Trusted Brand with Clear Positioning
Many potential consumers do not try the category due to the lack of a trusted
and premium brand.
Top Brands drive the vast majority of sales and growth!
The original and premium Red Bull brand will establish and grow the Energy
Shot Category by addressing the Consumer Need for brand trust.
“Red Bull has a good energy drink so they should have a good energy shot
as well. The Brand Red Bull would make me interested in trying their
energy shot.”*
*Source: Greenfield qualitative research energy shot users December 2008
HOW WILL RED BULL MEET THE CONSUMER NEEDS?
2) Need for Better Taste
Red Bull Shots have the same taste profile as the Energy
Drink.
Most current shots rank poorly on taste.
76% of energy shot consumers feel that energy shots
taste bad*
“(Red Bull Energy Shot) didn’t taste like chemicals, very
familiar”**
*Source: IRI Energy Shot Attitudes and Usage Study 1/09; **Greenfield qualitative research energy shot users December 2008
#1
DISLIKE
OF
CURRENT
ENERGY
SHOTS:
BAD
TASTE*
HOW WILL RED BULL MEET THE CONSUMER NEEDS?
3) Need for a Cool Image in the Category
Red Bull has the Brand Image to attract new younger consumers
37% Current Energy Shot consumer is between 45-54
19% is between 18-34
50% of Red Bull Energy Drink users are between 18-34
Over $25 million will be invested into the Red Bull Brand in 2009.
“Red Bull is the leader, they drive the cool little cars, they’re advertising and
promoting all the time, there’s a trust.”*
*Source: Greenfield qualitative research energy shot users December 2008
Agenda
AGENDA
Red Bull Energy Drink Success Story
The Current Energy Shot Category
What is the Consumer Telling Us they Need?
How will Red Bull meet the Consumer Needs?
How will Red Bull Shots help you?
Activation Plan
RED BULL ENERGY SHOT - PRODUCT OVERVIEW
Provides Sustained Energy For Hours…….
60 mL liquid, plastic bottle with screw top
Same taste as Red Bull Energy Drink
Same ingredients as Red Bull in other formats
Non-carbonated
No need for refrigeration – SNACK VENDING!!!
Low calories per serving
25 calories for Red Bull Energy Shot
HOW WILL RED BULL SHOTS HELP YOU?
General Consumer Benefits
Convenient Functionality
Fits in a purse, pocket, glovebox,…
New Usage Occasions
Small, portable, resealable
Warm Consumption Opportunities
Option to buy now, drink later
Functionally-focused Product
Less liquid, no carbonation, fewer calories
HOW WILL RED BULL SHOTS HELP YOU?
Vending Benefits
New Impulse Purchases:
Attracts new and existing energy
consumers
New Placement Opportunities:
Ability to range in snack vending
machines as no refrigeration required
Each column in machines can range
greater numbers of each product to its
compact nature
Additional Profits:
Attractive margin, consistent rate of sale
*Source: HIM Research 2009
HOW WILL RED BULL SHOTS HELP YOU?
Creating a Clear Target Consumer
Red Bull will establish and build credibility for the Energy Shots category in Australia.
Red Bull Energy Shots combine the Top Energy Brand with a viable and growing category
Red Bull will drive penetration of Energy Shots by appealing to:
The Current Red Bull Energy Drink consumer who will buy a shot in addition to Red
Bull Energy Drink;
The Current Shot Consumer who is looking for a trusted brand and better taste;
The New Shot Consumer who recognizes the Red Bull Brand.
“Red Bull brings the two things that are missing from the
category…taste and trust.”*
*Source: Greenfield qualitative research energy shot users December 2008
AGENDA
Agenda
Red Bull Energy Drink Success Story
The Current Energy Shot Category
What is the Consumer Telling Us they Need?
How will Red Bull meet the Consumer Needs?
How will Red Bull Shots help you?
Activation Plan
ACTIVATION PLAN
Pricing
List Price (case):
$52.80 (excl GST)
Net 20% Terms (per shot):
$1.94 inc GST
RRP (vending):
$4.00 inc GST
Margin:
$2.17
% Margin:
52%
250ml
E shot
Case ex GST Case GST Case inc GST net terms LUC inc GST Sell
GP $
GP %
$
42.00 $ 46.20 $
36.96 $
1.54 $ 3.40 $ 1.86
55%
$
52.80 $ 58.08 $
46.46 $
1.94 $ 4.00 $ 2.06
52%
ACTIVATION PLAN
Detailed Product Specifications
Size (Approx):
Bottle: 9.6cm (H) x 3.5cm (W)
12 Pack Unit: 9.9cm (H) x 14.7cm (W) x 10.9cm
(D)
Case: 12.2cm (H) x 23.1cm (W) x 15.5cm (D)
Shipper:
12 bottles per self-merchandising unit (12
Pack)
2 x 12 pack units per case (24 units per
case)
1 pallet = 350 cases (700 outers)
ACTIVATION PLAN
Timings
Product Available:
W/c 1 September
Distribution in store – wc 15 September
ACTIVATION PLAN
Volume Forecast for National Vending Customers
Customer # of Snack Machines Distribution ROS
Q4 2009
Volume - Units
Q4 2009
Volume - Cases
8500
20%
10
221,000
9,208
3000
15%
8
46,800
1,950
2000
10%
8
20,800
867
288,600
12,025
13,500
2,350
Customer # of Snack Machines Distribution ROS
2010
Volume - Units
2010
Volume - Cases
8500
50%
10
2,210,000
92,083
3000
50%
8
624,000
26,000
2000
30%
8
249,600
10,400
3,083,600
128,483
13,500
6,350